[Frontier Airlines Makes New Offer to Merge with Spirit Airlines, Despite Previous Rejection
Frontier Airlines is making another attempt to merge with bankrupt Spirit Airlines, an offer that has been met with rejection by Spirit. The new proposal, announced by Frontier on Wednesday, aims to create a stronger low-cost carrier and provide “meaningful value to Spirit financial stakeholders.”
The latest offer is funded by new Frontier debt and common stock, and Frontier’s board of directors Chair Bill Franke believes it will result in more value than Spirit’s standalone plan. However, Spirit has rejected the offer, calling it “far short” of what shareholders would expect and less than the previous offer.
This is not the first time the two airlines have attempted to merge. Frontier and Spirit originally intended to merge in 2022, but the deal was scrapped when JetBlue offered Spirit more money. However, a federal judge blocked Spirit’s merger with JetBlue, leaving the carrier in a state of financial uncertainty.
In November 2024, Spirit filed for bankruptcy and has since slashed 200 jobs in an effort to reduce costs. The airline is now considering merging with Frontier, which could create the nation’s fifth-largest airline.
Both Frontier and Spirit have made efforts to upgrade their services in recent months, with Frontier introducing “first-class style” seats later this year and Spirit rolling out premium “Go Big” bundles, which allow passengers to pay extra for tickets that include items such as snacks, drinks, and free bags and priority check-in.
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